You may remember that, over the past few years, I have talked about the resilience of corporate America. Companies that did not fare particularly well during the tech crash of 2002/2003 or the financial crisis of 2008/2009 took those opportunities to learn from their mistakes and make improvements in their business practices to avoid problems in the future. As the current earnings season wraps up, we are seeing real evidence that companies are navigating the COVID pandemic and associated challenges fairly well.
Among the companies in the S&P 500, 213 have reported revenue for the calendar year’s second quarter above 2019 levels after a drop in 2020. Another 153 have had second-quarter revenue in each of the past two years that exceeded 2019. This represents 75% of the S&P 500 companies that have reported results thus far. At the same time, 101 companies remain below their 2019 figures, and 10 saw a drop this year after a rise last year.
If you would like to read more about these results, there is an article in the Wall Street Journal today that you can read here. It includes examples of companies that have done well along with those that have struggled.
If you have questions or would like to chat, please let me know. I hope you all have a great Labor Day holiday.
